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Some Extensions to Interregional Commodity-Flow Models

In: The Co-evolution of Commodity Flows, Economic Geography, and Emissions

Author

Listed:
  • Kieran Donaghy

    (Cornell University)

  • Arash Beheshtian

    (Altum Group Advisors)

  • Ziye Zhang

    (Princeton University)

  • Benjamin Brown-Steiner

Abstract

Some interregional commodity-flow models, developed in the tradition of interregional input–output modeling, take on detailed characterizations of transportation networks to extend their explanatory reach, whereas others, developed in the tradition of spatial-interaction modeling, assume detailed characterizations of production. This chapter demonstrates how features of models within each of these two traditions can be integrated into two new specifications: a partial equilibrium static formulation and a dynamic formulation of production, location, and interaction. The chapter also introduces several extensions to extant commodity-flow models, including explicit treatment of trade in intermediate goods, so-called new economic geography behavioral foundations for production and interindustry and interregional trade, and endogenous determination of capital investment and employment. These extensions enable commodity-flow models to be used to analyze the impacts of recent structural changes.

Suggested Citation

  • Kieran Donaghy & Arash Beheshtian & Ziye Zhang & Benjamin Brown-Steiner, 2021. "Some Extensions to Interregional Commodity-Flow Models," Advances in Spatial Science, in: The Co-evolution of Commodity Flows, Economic Geography, and Emissions, chapter 0, pages 85-98, Springer.
    • Handle: RePEc:spr:adspcp:978-3-030-78555-0_6
    DOI: 10.1007/978-3-030-78555-0_6
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